XL Capital has said it expects pre-tax net losses arising from hurricanes Katrina and...
XL Capital has announced that, based on current loss reports and estimates, it expects pre-tax net losses arising from hurricanes Katrina and Rita of $1.16bn and $263.6m respectively.
The company said it also expects its pre-tax net losses from other previously announced natural catastrophes in the third quarter to be approximately $89.7m.
After taking into account net reinstatement premiums and tax effects, XL estimates net losses from the hurricanes of approximately $1.47bn.
The company said that excluding these third quarter catastrophe losses, it expects operating income for the quarter to be broadly in line with consensus analyst estimates issued prior to Hurricane Katrina.
After taking into account the expected losses from these events, the company said it now expects an operating loss for full year 2005.
Brian M. O'Hara, president and chief executive of XL, said: "These hurricanes are market-changing events for our industry. We believe that we are well-positioned to serve our customers and expect to be an active lead participant in the upcoming renewal season.
"XL will take the steps necessary to maintain its fundamental financial strength."
